Late fees - approaches to tackle slow pays with built up fees

[Account Closed]

Looking for ideas on how to handle the chronic slow payer.  I'm thinking someone out there has some good ideas?  Yes the lease covers late fees.  No they don't pay the late fees,  but do pay the rent.  I'm thinking a diect discussion with the tenant is the starting place.  Not sure a letter is going to do it.

Say that both a discussion and letter do not work...how have you remedied this yourself?  Do you use late fees as an eviction basis or just leave them out there to be settled at lease completion.  Do payment plans work on fee collection in your experience? Looking for the best practices on BP....Thank you!

[Jon Holdman]

I have a clause in my lease that states I can apply money received to fees or other charges first, then to rent.  So, "they don't pay the late fees, but do pay the rent" would mean the late fees were paid but the rent was not.  If the rent wasn't paid, I'd start an eviction. Usually the pay or quit notice gets their attention.  I also only do month to month leases, so if the tenant becomes a problem, the lease can just be terminated.

I also offer a small discount if the rent is paid on the first.  I've found that's much more motivating than the late fee.